Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Axmouth and Branscombe. Inevitably, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Axmouth and Branscombe have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Axmouth and Branscombe lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
Leasehold premises in Axmouth and Branscombe with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Axmouth and Branscombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Kai, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Axmouth and Branscombe. Having bought his home twenty years previously, the lease term was of little bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Kai was able to extend his lease just in the nick of time last March. Kai and the freeholder via the managing agents in the end settled on an amount of £6,000 . If the lease had descended lower than eighty years, the sum would have escalated by at least £975.
Last Winter we were approach by Mrs Yasmin Mercier , who was assigned a lease of a purpose-built flat in Axmouth and Branscombe in November 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Axmouth and Branscombe with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed yearly. The lease ended in 2079. Given that there were 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.
Last Christmas we were e-mailed by Ms Millie Wood , who took over the lease of a studio flat in Axmouth and Branscombe in March 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Axmouth and Branscombe with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease termination date was in 2099. Taking into account 74 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.